“Many people are going to be surprised by the lack of bank failures in Florida and Nevada given the dramatic price drops that have occurred in both states’ real estate markets,” says Condo Vultures’ Peter Zalewski (right). “One way to explain the low bank failure rate in Florida and Nevada is to assume that the local institutions in each market did a more competent job of lending and underwriting loans than did the out-of-town financiers who rushed to market. The other more likely explanation is that both states are primed for a rash of problems in the future.”